TLDR:
- UK VC investment dropped 45% in 2023, hitting lowest levels since 2016
- London remained the top city for VC investment, with $13.6bn raised in 2023
The amount of venture capital investment in the UK fell by 45% in 2023, hitting its lowest levels since 2016, according to KPMG’s quarterly Venture Pulse report. The total value of VC investment in the UK dropped from $36.8bn in 2022 to $20.3bn in 2023, with uncertainty surrounding the UK general election cited as a major factor. London attracted the most VC investment in 2023, raising $13.6bn, although this was a significant drop from 2022. The report also highlighted that VC investment into European businesses fell by over 20% in the final quarter of 2023, with a focus on ensuring companies have a strong path to profitability. Looking ahead, the report predicts that VC investment globally will remain depressed due to geopolitical conflicts and elections in 2024, with AI, cleantech, healthtech, and ESG-related innovation continuing to be key areas of interest for investors.
